SYM Down 18.9% Since Q4 Earnings: Buy, Sell or Hold the Stock?

Symbotic SYM reported fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results on Nov. 24, after market close. The company, which is a key player in the Zacks Technology Services industry, reported better-than-expected earnings per share and revenues. However, despite the all-round outperformance, shares of SYM have lost 18.9% since the earnings release, lagging its industry as well as fellow industry players Bitfarms BITF and Coherent Corp. COHR.

SYM's Price Comparison Since Q4

Given this backdrop, the question that naturally arises is how investors should play SYM stock now. Let us delve deeper and analyze Symbotic’s fundamentals to answer the question.

Highlights of SYM’s Q4 Earnings

Symbotic ’s fourth-quarter fiscal 2025 earnings per share (excluding 50 cents from non-recurring items) of 53 cents easily outpaced the Zacks Consensus Estimate of 7 cents. In the year-ago quarter, the technology services company posted earnings of 5 cents per share. 

Revenues of $618.5 million beat the Zacks Consensus Estimate by 3.1% and improved year over year. Systems contributed the bulk of the top line, accounting for 94.1%. In the fourth quarter of fiscal 2025, Symbotic reported a backlog of $22.5 billion, up sequentially owing to project pricing and the addition of Medline. Driven by ongoing expansion in SYM’s operational systems, software revenues rose 57% year over year to $9.3 million in the fiscal fourth quarter, while operations services revenues increased 21% to $26.9 million.

For the first quarter of fiscal 2026, Symbotic projects revenues in the range of $610-$630 million, indicating year-over-year growth in the 25-29% band and adjusted EBITDA between $49 million and $53 million.

SYM’s earnings beat estimates twice in the past four quarters. Symbotic has lagged the Zacks Consensus Estimate in the two other quarters. The average beat is 69.3%.

Symbotic Price and EPS Surprise

Symbotic Inc. price-eps-surprise | Symbotic Inc. Quote

Backlog Optimism for SYM

Symbotic’s sizable backlog offers strong visibility into future revenue generation. In the fourth quarter of fiscal 2025, the company had a backlog of $22.5 billion. The company’s healthy positioning with respect to backlog drove the year-over-year revenue growth in the fourth quarter of fiscal 2025.

Symbotic also appears well placed to achieve margin expansion, aided by the steady pace of system deployments. Moreover, its solid free cash flow and favorable current ratio signal healthy liquidity.

Some Headwinds That Cannot Be Overlooked

Apart from its mixed earnings history, SYM is being confronted with quite a few challenges. Let's take a look at them.

Technical indicators do not suggest continued strong performance for SYM. The stock trades below its 14-day moving average, which does not signal robust upward momentum and price stability. SYM has a  Momentum Score of F.

14-Day Moving Average Data of SYM Stock

SYM’s overdependence on Walmart WMT raises concerns. The partnership with Walmart, SYM’s largest customer, accounts for a significant portion of its revenues. In January, Symbotic completed the acquisition of Walmart’s advanced systems and robotics business.

While we do not anticipate any threat soon, investors should be cautious about customer concentration risks. Furthermore, Symbotic does not currently distribute dividends and has no plans to initiate them, which makes the stock less attractive to income-oriented investors. The company also faces risks tied to its international expansion, particularly around adapting its technology to diverse operating environments and customer requirements. In addition, tariff-related economic uncertainty could weigh on Symbotic’s operations and financial performance in the future.

Symbotic is currently considered relatively overvalued, trading at a forward 12-month price-to-sales ratio of 12.77. The figure is higher than industrial levels and industry peers, Coherent and Bitfarms. Symbotic has a Value Score of F, like Bitfarms, while Coherent has a Value Score of D.

SYM’s P/S F12M vs. Industry, COHR & BITF

Conclusion

With the company facing certain risks, like reliance on a particular customer and challenges in scaling new technology, betting on the stock now might mean overpaying. Despite the backlog-related optimism, SYM, currently carrying a Zacks Rank #4 (Sell), looks like a stock to avoid rather than chase.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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